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Full text of "North Carolina Register v.3 no. 19 (1/2/1989)"

■ : KJ/' 



JAN 4 1989 
\lAW LIBRARY 



The 
NORTH CAROLINA 

REGISTER 



IN THIS ISSUE 



FINAL DECISION LETTERS 




PROPOSED RULES 
Education 
Insurance 
NRCD 

FINAL RULES 
Revenue 



ISSUE DATE: JANUARY 2, 1989 



Volume 3 • Issue 19 • Pages 854-872 



INFORMATION ABOUT THE NORTH CAROLINA REGISTER AND ADMINISTRATIVE CODE 



NORTH CAROLINA REGISTER 

The Nortli Carolina Register is published bi-monthly 
and contains information relating to agency, executive, 
legislative and judicial actions required by or affecting 
Chapter 150B of the General Statutes. All proposed, ad- 
ministrative rules and amendments filed under Chapter 
150B must be published in the Register. The Register 
will typically comprise approximately fifty pages per 
issue of legal text. 

State law requires that a copy of each issue be pro- 
vided free of charge to each county in the state and to 
various state officials and institutions. The North 
Carolina Register is available by yearly subscription at 
a cost of ninety-five dollars ($95.00) for 24 issues. 

Requests for subscriptions to the North Carolina 
Register should be directed to the Office of Ad- 
ministrative Hearings, P. O. Drawer 1 1666, Raleigh, N. 
C. 27604, Attn: Subscriptions. 

ADOPTION, AMENDMENT, AND REPEAL OF 
RULES 

An agency intending to adopt, amend, or repeal a rule 
must first publish notice of the proposed action in the 
North Carolina Register. The notice must include the 
time and place of the public hearing; a statement of how 
public comments may be submitted to the agency either 
at the hearing or otherwise; the text of the proposed 
rule or amendment; a reference to the Statutory 
Authority for the action and the proposed effective date. 

The Director of the Office of Administrative Hearings 
has authority to publish a summary, rather than the 
full text, of any amendment which is considered to be 
too lengthy. In such case, the full text of the rule con- 
taining the proposed amendment will be available for 
public inspection at the Rules Division of the Office of 
Administrative Hearings and at the office of the pro- 
mulgating agency. 

Unless a specific statute provides otherwise, at least 
30 days must elapse following publication of the pro- 
posal in the North Carolina Registerbefore the agency 
may conduct the required public hearing and take ac- 
tion on the proposed adoption, amendment or repeal. 

When final action is taken, the promulgating agency 
must file any adopted or amended rule for approval by 
the Administrative Rules Review Commission. Upon ap- 
proval of ARRC, the adopted or amended rule must be 
filed with the Office of Administrative Hearings. If it 
differs substantially from the proposed form published 
as part of the public notice, upon request by the agen- 
cy, the adopted version will again be published in the 
Nortli Carolina Register. 

A rule, or amended rule cannot become effective 
earlier than the first day of the second calendar month 
after the adoption is filed with the Office of Ad- 
ministrative Hearings for publication in the NCAC. 

Proposed action on rules may be withdrawn by the 
promulgating agency at any time before final action is 
taken by the agency. 

TEMPORARY RULES 

Under certain conditions of an emergency nature, 
some agencies may issue temporary rules. A temporary 
rule becomes effective when adopted and remains in 



effect for the period specified in the rule or 180 day 
whichever is less. An agency adopting a temporary ni 
must begin normal rule-making procedures on the pe 
manent rule at the same time the temporary rule 
adopted. 

NORTH CAROLINA ADMINISTRATIVE CODE 

The North Carolina Administrative Code (NCAC) 
a compilation and index of the administrative rules ( 
25 state agencies and 38 occupational licensing board 
The NCAC comprises approximately 15,000 letter siz< 
single spaced pages of material of which approximat 
ly 359-6 is changed annually. Compilation and public 
tion of the NCAC is mandated by G.S. 150B-63(b). 

The Code is divided into Titles and Chapters. Eac 
state agency is assigned a separate title which is fu 
ther broken down by chapters. Title 21 is designate 
for occupational licensing boards. 

The NCAC is available in two formats. 

(1) Single pages may be obtained at a minimui 
cost of two dollars and 50 cents ($2.50) for 1 
pages or less, plus fifteen cents ($0.15) per eac 
additional page. 

(2) The full publication consists of 52 volume 
totaling in excess of 15,000 pages. It is su 
plemented monthly with replacement pages, 
one year subscription to the full publication i 
eluding supplements can be purchased f< 
seven hundred and fifty dollars ($750.00). I 
dividual volumes may also be purchased wii 
supplement service. Renewal subscriptions f 
supplements to the initial publication availab 

Requests for pages of rules or volumes of the NC^ 
should be directed to the Office of Administrati 
Hearings. 

NOTE 

The foregoing is a generalized statement of the pr 
cedures to be followed. For specific statutory languag 
it is suggested that Articles 2 and 5 of Chapter 150B 
the General Statutes be examined carefully. 

CITATION TO THE NORTH CAROLINA 
REGISTER 

The North Carolina Register is cited by volume, issi 
page number and date. 1:1 NCR 101-201, April 1, 19 

refers to Volume 1, Issue 1, pages 101 through 201 
the North Carolina Register issued on April 1, 1986 



North Carolina Register. Published bi-monthly by 
the Office of Administrative Hearings, P.O. 
Drawer 1 1666, Raleigh, North Carolina 27604, pur- 
suant to Chapter 150B of the General Statutes. 
Subscriptions ninety-five dollars ($95.00) per year. 
North Carolina Administrative Code. Published 
in looseleaf notebooks with supplement service by 
the Office of Administrative Hearings, P.O. 
Drawer 1 1666, Raleigh, North Carolina 27604, pur- 
suant to Chapter 150B of the General Satutes. 
Subscriptions seven hundred and fifty dollars 
($750.00). Individual volumes available. 



NORTH 
CAROLINA 
REGISTER 




Office of Administrative Hearings 

P. O. Drawer 11666 

Raleigh, NC 27604 

(919) 733 - 2678 



Robert A. Melott, 

Director 
James R. Scarcella Sr., 

Deputy Director 
Molly Masich, 

Director APA Services 



ISSUE CONTENTS 



I. FINAL DECISION LETTERS 

Voting Rights Act 854 



II. PROPOSED RULES 
Education 

Elementary and Secondary 

Education 862 

Insurance 

Special Services Division 856 

Support Services Division 856 

NRCD 
Wildlife Resources 
Commission 860 

HI. FINAL RULES 
Revenue 

Departmental Rules 864 

Individual Income 
Tax Division 864 

IV. CUMULATIVE INDEX 869 



Staff: 

Ruby Creech, 

Publications Coordinator 
Teresa Kilpatrick, 

Editorial Assistant 
Jean Shirley, 

Editorial Assistant 



NORTH CAROLINA REGISTER 

Publication Deadlines and Schedules 

(September 1988 - March 1989) 



Issue 


Last Day 


Last Day 


Earliest 


* 


Date 


for 


for 


Date for 


Earliest 




Filing 


Electronic 


Public 


Effective 






Filing 


Hearing & 
Adoption by 
Agency 


Date 


******** 


+***+*++ 


+++**+++ 


++**+*+* 


******** 


09/01/88 


08/11/88 


08/18/88 


10/01/88 


01/01/89 


09/15/88 


08/26/88 


09/02/88 


10/15/88 


01/01/89 


10/03/88 


09/12/88 


09/19/88 


11/02/88 


02/01/89 


10/14/88 


09/26/88 


10/03/88 


11/13/88 


02/01/89 


11/01/88 


10/11/88 


10/18/88 


12/01/88 


03/01/89 


11/15/88 


10/26/88 


11/02/88 


12/15/88 


03/01/89 


12/01/88 


11/07/88 


11/15/88 


12/31/88 


04/01/89 


12/15/88 


11/23/88 


12/02/88 


01/14/89 


04/01/89 


01/02/89 


12/08/88 


12/15/88 


02/01/89 


05/01/89 


01/16/89 


12/27/88 


01/03/89 


02/15/89 


05/01/89 


02/01/89 


01/10/89 


01/17/89 


03/03/89 


06/01/89 


02/15/89 


01/26/89 


02/02/89 


03/17/89 


06/01/89 


03/01/89 


02/08/89 


02/15/89 


03/31/89 


07/01/89 


03/15/89 


02/21/89 


03/02/89 


04/14/89 


07/01/89 



* The "Earliest Effective Date" is computed assuming that the public hearing 
and adoption occur in the calendar month immediately following the "Issue 
Date", that the agency files the rule with The Administrative Rules Review 
Commission by the 20th of the same calendar month and that ARRC approves 
the rule at the next calendar month meeting. 



VOTING RIGHTS ACT FINAL DECISION LETTERS 



[G.S. 120-30.9H, effective July 16, 1986, requires that all letters and other documents issued by the 
A ttorney General of the United States in which a final decision is made concerning a "change af- 
fecting voting" under Section 5 of the Voting Rights Act of 1965 be published in the North Carolina 
Register. } 



U.S. Department ol Justice 
Civil Rights Division 

WBR:LLT:ST:rac 

DJ 166-012-3 Voting Section 

W8396 P.O. Box 66128 

Y0329-0330 Washington, D.C. 20035-6128 

December 2, 1988 

Richard J. Rose, Esq. 

Poyner & Spruill 

P. O. Box 353 

Rocky Mount, North Carolina 27802-0353 

Dear Mr. Rose: 

This refers to the two annexations [Ordinance Nos. 171 and 176 (1988)] and the designation of the 
annexed areas to single-member districts for the City of Rocky Mount in Edgecombe and Nash 
Counties, North Carolina, submitted to the Attorney General pursuant to Section 5 of the Voting 
Rights Act of 1965, as amended, 42 U.S.C. 1973c. We received your submission on October 3, 1988. 

The Attorney General does not interpose any objections to the changes in question. However, 
we feel a responsibility to point out that Section 5 of the Voting Rights Act expressly provides that the 
failure of the Attorney General to object does not bar any subsequent judicial action to enjoin the 
enforcement of such changes. See the Procedures for the Administration of Section 5 (28 C.F.R. 
51.41). 

Sincerely, 

Wm. Bradford Reynolds 
Assistant Attorney General 
Civil Rights Division 

By: 



Gerald W. Jones 
Chief, Voting Section 



NOR TH CAROLINA REGIS TER 854 



VOTING RIGHTS ACT FINAL DECISION LETTERS 



U.S. Department of Justice 
Civil Rights Division 

WBRTLTTGLxac 

DJ 166-012-3 Voting Section 

W9186 P.O. Box 66128 

Y0539-0541 Washington, D.C. 20035-6128 

December 8, 1988 

Michael Crowell, Esq. 
Tharrington, Smith & Hargrove 
P. O. Box 1151 
Raleigh, North Carolina 27602 

Dear Mr. Crowell: 

This refers to the increase in the number of board members from five to seven, the interim ap- 
pointment of two additional members for terms of less than four years, a change in the pattern of 
staggered terms from 3-2 to 4-3, and the implementation schedule for the county board of education 
in Lenoir County, North Carolina, submitted to the Attorney General pursuant to Section 5 of the 
Voting Rights Act of 1965, as amended, 42 U.S.C. 1973c. We received your submission on October 
14, 1988. 

The Attorney General does not interpose any objections to the changes in question. However, 
we feel a responsibility to point out that Section 5 of the Voting Rights Act expressly provides that the 
failure of the Attorney General to object does not bar any subsequent judicial action to enjoin the 
enforcement of such changes. See the Procedures for the Administration of Section 5 (28 C.F.R. 
51.41). 

Sincerely, 

Wm. Bradford Reynolds 
Assistant Attorney General 
Civil Rights Division 

By: 



Gerald W. Jones 
Chief, Voting Section 



S55 NOR TH CA ROLINA REGIS TER 



PROPOSED RULES 



TITLE 1 1 - DEPARTMENT OF 
INSURANCE 



No 



otice is hereby given in accordance with G.S. 
J SOB- 12 that the Department of Insurance intends 
to repeal rule cited as J J NCAC 2 .0101; amend 
rules 11 NCAC 13 .0301, .0303, .0305 - .0306, 
.0308 - .0310, .0313, .0316 - .0318, .0323 - .0324, 
.0501, .0504, .0514; adopt rules 11 NCAC 13 
.0325, .0517. 

1 he proposed effective date of this action is May 
1, 1989. 

1 he public hearing will be conducted at 10:00 
a.m. on February 1, 1989 at Third Floor Hearing 
Room, Dobbs Building, 430 N. Salisbury Street, 
Raleigh, NC 27611. 

Comment Procedures: Written comments may 
be sent to Linda Stott at P.O. Box 26387, Raleigh, 
N.C. 27611. Oral presentations may be made at 
the public hearing. Anyone having questions 
should call Linda Stott at (919) 733-4700. 

CHAPTER 2 - SUPPORT SERVICES DIVISION 

SECTION .0100 - GENERAL PROVISIONS 

.0101 PURPOSE OF DIVISION (REPEALED) 

Statutory Authority G.S. 58-9; 143-1 to 143-34.4; 
128-1 to 128-4; 105-59. 

CHAPTER 13 - SPECIAL SERVICES DIVISION 

SECTION .0300 - INSURANCE PREMIUM 
FINANCE COMPANIES 

.0301 FORMS 

The following forms are provided by the divi- 
sion and are used by insurance premium finance 
companies for purposes as specified herein: 

(1) Application for Insurance Premium Fi- 
nance License. The form entitled "Appli- 
cation for Insurance Premium Finance 
License" shall include general interrogatories 
concerning the company's structure, e*»- 
ployooc employees' past business experience, 
address and proposed method of operation 
of the applicant as well as all other pertinent 
information. 

(2) Premium Finance License Renewal Form. 
A "Premium Finance Renewal 
Application" shall include the name and 
address of the premium finance company, 
date of cancellation of the license if the ap- 
plication is not received by the division, the 



amount of the proper license fee, a statement 
of any changes in the structure of the appli- 
cant since its last application, a computation 
of the bond amount specified in General 
Statute 58-56.2 and 11 NCAC 13 .0302, in- 
structions for the completion and return of 
the application and other pertinent informa- 
tion. 

(3) Premium Finance Surety Bond Form. The 
surety bond described in General Statute 
58-56.2 shall be executed on a form supplied 
by the commissioner and shall be executed 
in accordance with the laws of North 
Carolina governing surety bonds. The 
surety bond form shall include the name of 
the premium finance company [corporation 
— use corporate name exactly as shown on 
the articles of incorporation; 
unincorporated — use name(s), trading as 
(T/A) the name of the premium finance 
company], name of the surety, amount of 
the bond, terms of cancellation of the bond 
and other pertinent information. 

(4) Premium Finance Company Personnel 
Form. Each stockholder owning 10 percent 
or more of the applicant's outstanding stock 
and each partner, director, officer, office 
manager or field representative employed by 
the applicant shall complete form DOI-5PF 
entitled "Personal Questionnaire." Form 
DOI-5PF will be furnished by the commis- 
sioner and shall contain the name of the 
premium finance company, the name and 
address of the individual completing the 
form, the position(s) held by the individual, 
past business experience of the individual, 
the name and address of three people not 
related to the individual who can attest to 
the individual's reputation for honesty and 
fair dealings and other pertinent informa- 
tion. All "Personal Questionnaires" shall 
be attached to the applicant's "Application 
for Insurance Premium Finance License." 

(5) Request by Insured for Separate Contracts 
Form. Each insured who expressly requests 
separate premium finance contracts author- 
ized by ]_[ NCAC j_3 .0325 shall complete 
form DOI-6PF entitled "Request by Insured 
for Separate Contracts." 

Statutory Authority G.S. 58-9; 58-56(b); 
58-56.2(a). 

.0303 PREMIUM FINANCE LICENSING 
PROCEDURES 

(a) Applicants must meet minimum qualifica- 
tions as stated in Chapter 58, Article 4, of the 
North Carolina General Statutes. 



NORTH CAROLINA REGISTER 



856 



PROPOSED RULES 



(b) Applicants must submit a properly com- 
pleted "Application for Insurance Premium Fi- 
nance License" to the division. The following 
items, where applicable, shall be attached to and 
made a part of the application: 

(1) A certified copy of the board of directors 
resolution that authorized the application 
to be made; 

(2) A duly authenticated copy of the appli- 
cant's articles of incorporation, together 
with all amendments and supplements 
thereto; 

(3) A duly authenticated copy of the appli- 
cant's constitution aee by-laws; 

(4) If the applicant is a foreign corporation, 
a copy of the certificate of authority to 
transact business in this state issued by the 
North Carolina Secretary of State; 

(5) Certified copy of the current partnership 
agreement; 

(6) If a trade name is used, a certificate 
showing that the trade name has been 
filed as required in North Carolina Gen- 
eral Statute 66-68; 

(7) A surety bond as specified in General 
Statute 58-56.2(a) and 11 NCAC 13 
.0302; 

(8) Form number DOI-5PF completed on 
each individual specified in 11 NCAC 13 
.0301 (4); 

(9) A statement sworn statement te by a 
corporate officer, partner or individual 
proprietor giving a detailed description of 
the premium financing procedures to be 
employed in North Carolina. The de- 
tailed description should include proce- 
dures outlining the execution of a 
premium finance agreement, procedures 
for payment in full before the maturity of 
the agreement, and cancellation proce- 
dures. The cancellation procedures 
should indicate the dates of all notices, 
and the method of refund to the insured 
when applicable. 

Two copies each of a proposed Insurance 
Premium Finance Agreement, rate chart, 
ten-day notice, cancellation notice and all 
related forms to be mailed or given to 
North Carolina citizens; 

A current audited financial statement of 
the premium fmance company, proposed 
prepared by a certified public accountant 
or by a qualified independent accountant 
who is engaged in the public practice of 
accounting; 

Check in the amount of the permit fee 
as specified in General Statute 58-56 



(10) 



(11) 



(made payable to the North Carolina De- 
partment of Insurance); 

(13) Such aH other data and information as 
the commissioner may deem reasonably 
necessary to assist him in detenniriing 
whether e* ee* the applicant is entitled to 
the license sought; 

(14) If the applicant is a foreign company it 
shall appoint and maintain the commis- 
sioner ef Insuranc e as an agent for the 
service of process on a form prescribed by 
the commissioner. 



Statutory Authority 
58-56.2; 58-58. 



G.S. 58-9; 58-56(b); 



(12) 



.0305 CANCELLATION OF SURETY BOND 

If the surety bond as specified in General Stat- 
ute 58- 56. 2(a) is cancelled for any reason during 
the period a premium fmance company holds a 
valid license from the department, the licensee 
shall be notified in writing by the commissioner 
that the licensee's its license is void until such 
time as a proper surety bond is received by the 
department. 

Statutory Authority G.S. 58-9; 58-56. 2(a). 

.0306 FORMS TO BE APPROVED 

All ten-day notices of intent to cancel forms, 
cancellation notices, additional premium notices, 
premium finance agreement revision notices, or 
all other notices or forms mailed or given to 
North Carolina insureds shall be filed with the 
commissioner ef Insurance for approval. Such 
filings forms shall not be used in this state until 
written approval has been given by the commis- 
sioner. 

Statutory Authority G.S. 58-9; 58-58. 

.0308 ANNUAL STATEMENT 

Each licensee shall file a special report entitled 
"Annual Statement" with the commissioner on 
or before March 1 of each year. The annual 
statement shall be a record of the premium fi- 
nance company's business for the calendar year 
(January- December) immediately preceding the 
filing date. The annual statement form will be 
supplied by the commissioner and shall include 
the name and address of the licensee, a list of the 
officers and directors of the licensee, instructions 
for filing the report, a statement of income, a 
statement ef expenses, a statement ef assets, a 
statement ef and liabilities, a reconciliation of the 
licensee's net worth, schedules of pertinent bal- 
ance sheet items, general interrogatories con- 
cerning the licensee's operation in North 



S57 



NORTH CAROLINA REGISTER 



PROPOSED RULES 



Carolina, an analysis of premium finance con- 
tracts written in North Carolina and all other 
pertinent information. 

Statutory Authority G.S. 58-9; 58-57. 1(a). 

.0309 QUARTERLY REPORT 

Each licensee each yea* shall file a special report 
entitled "Analysis of Contracts and Operation" 
with the commissioner on or before the 15th day 
of January, April, July and October of each year. 
The report shall be a record of the business fi- 
nanced during the three months immediately 
preceding the month in which it is filed (example: 
January 15 report will include October, Novem- 
ber and December). The quarterly report form 
will be supplied by the commissioner and shall 
include the name and address of the licensee, in- 
structions for filing the report, and all the fol- 
lowing information separated by month: 

(1) number of contracts written, 

(2) total premiums financed on those contracts, 

(3) down payments collected ©f on those con- 
tracts, 

(4) principal balance on those contracts, 

(5) service charges on those contracts, 

(6) number of contracts cancelled by power of 
attorney. 

Statutory Authority G.S. 58-9; 58-57.1. 

.0310 BOOKS AND RECORDS 

Each licensee shall keep and maintain the fol- 
lowing records, separate and apart from any 
other business, so as to be readily available for 
inspection by the commissioner, or an employee 
designated by the commissioner: fof the pur 

(1) a copy of each premium finance agreement 
entered into by the licensee and all original 
documents relating thereto; All such records 
shall have a common identifying number 
(agreement or contract number); 

(2) an account card, ledger, register, or combi- 
nation of records containing a summary of 
each premium finance agreement which shall 
contain: 

(a) the date of the agreement; 

(b) the name of the insured; 

(c) the identifying number; 

(d) the principal balance; 

(e) the amount of service charge; 

(f) the time balance; 

(g) number and amount of payments due 
from the insured; 

(h) date and amount of payments received 
from the insured; 



(i) date and amount of return premium re- 
ceived from an insurance company; 

(j) date, amount and check number of any 
refund returned to an insured; as4 

(k) date the ten-day written notice of intent 
to cancel, required under North Carolina 
General Statute 58-60(1), was mailed to 
the surod; insured; and 

(1) copy of form number DOI-6PF, if appli- 
cable. 

(3) a copy of any additional balance notice 
mailed to the insured; 

(4) a copy of any notice of cancellation mailed 
under North Carolina General Statute 
58-60(2); 

(5) such journals, ledgers, check registers, re- 
ceipt books and all other records as may be 
necessary to accurately and completely re- 
cord all financial transactions of the licensee; 
Such books and records shall be posted up 
to date at least once each month and shall 
be used by the licensee in completing the 
annual statement; 

(6) such other records, books, or accounts as 
will enable the commissioner to determine 
whether the licensee is complying with all 
the provisions of Chapter 58, Article 4, and 
these rules. 

Statutory Authority G.S. 58-57.1. 

.0313 ADDITIONAL BALANCES ADDED TO 
FINANCE AGREEMENTS 

Any additional balances may ho* be added to a 
premium finance agreement unless the original 
or subsequent agreement specifically authoriz e o 
does not authorize such additions. 

Statutory Authority G.S. 58-9; 58-58.1 (a). 

.0316 ADDITIONAL BALANCE NOTICE TO 
INSURED 

When a premium finance agreement provides 
for the financing of additional balances and such 
additional balances are added to the agreement 
by the licensee, a notice of the additional balance 
shall be mailed to the insured, at his last known 
address as shown on the agreement, by the 
licensee. The notice shall be mailed at least +& 
day* prior to the next payment due date and in- 
clude an explanation of the amount added, the 
service charge added, the new balance payable 
by the insured, the number of payments required, 
the amount of each payment, the date each pay- 
ment is due and all other pertinent information. 

Statutory Authority G.S. 58-9. 



NORTH CAROLINA REGISTER 



858 



PROPOSED RULES 



.0317 TEN-DAY NOTICE 

The 10 days ten-day written notice of intent to 
cancel as described in General Statute 58-60(1) 
shall include the name and address of the pre- 
mium finance company, the premium finance 
agreement number, the date the notice is mailed, 
the amount of the installment in default and all 
other pertinent information. A copy of the ten- 
day notice, or a listing of delinquent insureds 
showing the same general information, shall be 
mailed to the insurance agent shown on the pre- 
mium finance agreement at the same time notice 
is given to the insured. 

Statutory Authority G.S. 58-9; 58-60(1). 

.0318 NOTICE OF CANCELLATION 

The notice of cancellation as described in Gen- 
eral Statute 58-60(2) shall be signed by the owner 
or an officer of the premium finance company 
(the owner or officers officer's facsimile signature 
may be used), shall have in bold print at its top 
the wording "Notice of Cancellation" and shall 
include the name and address of the insured; the 
name and address of the insurance company; the 
name and address of the premium finance com- 
pany; the insurance company policy number; a 
certification that the ten-days notice of intent to 
cancel has been furnished to the insured; the au- 
thority under which the policy is to be cancelled; 
the date the notice is mailed to the insured; the 
date the notice is mailed to the insurance com- 
pany (if different from the insured mailing date); 
the effective date of cancellation; a notice stating, 
"If automobile liability insurance is included, you 
are cautioned that financial responsibility is re- 
quired to be maintained continuously throughout 
the registration period and that operation of a 
motor vehicle without maintaining such financial 
responsibility is a misdemeanor, the penalty for 
which is loss of registration plate, and fme or 
imprisonment, in accordance with the motor ve- 
hicle laws of the State of North Carolina as they 
may be amended from time to time"; and all 
other pertinent information. 

Statutory Authority G.S. 58-9; 58-60(2). 

.0323 COMPUTATION OF SERVICE CHARGES 

The service charges as provided in General 
Statute 58-59(c) shall be computed: 

(1) from the inception date of the insurance 
contract, the premiums for which are ad- 
vanced or to be advanced under the agree- 
ment, to and including the date when the 
final installment of the premium finance 
agreement is payable; If the premium fi- 
nance agreement is executed later than 30 



days after such inception date, there shall be 
deducted from the amount of the service 
charge an amount which bears the same 
proportion to the service charge, as the 
number of days from the 30th day after the 
policy inception date until the day of exe- 
cution of the premium finance agreement 
bears to the number of days from the policy 
inception to the date when the final install- 
ment of the premium finance agreement is 
payable. No deduction shall be required 
under this Paragraph, however, if the 
amount thereof is less than one dollar 
($1.00); »f tf the service charge is the mini 
mum service charg e permitted by General 
Statut e 58 59(c); 
(2) from the date the premium finance agree- 
ment is executed or any date after the pre- 
mium finance agreement is executed, to and 
including the date when the final installment 
of the premium finance agreement is paya- 
ble; provided the service charge does not 
begin prior to the inception date of the in- 
surance contract, the premiums for which 
are advanced or to be advanced under the 
agreement. 

Statutory Authority G.S. 58-9; 58-59. 

.0324 RETURN OF PREMIUM 

Upon a cancellation when the insurer has re- 
ceived notice that the return premium has been 
assigned to a premium finance company, the 
insurer shall within 60 days of such notice, for- 
ward to the premium finance company any gross 
unearned premium. When the gross unearned 
premium is in excess of that amount due to the 
premium finance company, the premium finance 
company shall, promptly no later than ten busi- 
ness davs, forward such excess amount to the 
insured by mailing it to the last known address 
of the insured. In the event that the insurance 
agent holds a bad check given by the insured as 
downpavment on the contract in question, cer- 
tification to the licensee, including a copy of the 
bad check, bv the agent that he holds a bad check 
and that the agent agrees to hold the licensee 
harmless shall entitle the licensee to make an 



remittance due the insured to the agent and not 
to the insured, provided that no remittance of 
return premium due the insured shall be made to 
the agent in any amount in excess of the amount 
of the bad check. 



Statutory Authority G.S. 58-60(5). 
.0325 MULTIPLE CONTRACTS 



S59 



NORTH CAROLINA REGISTER 



PROPOSED RULES 



When a contract or series of contracts is written 
by more than one agent, or when the contracts 
are written and dated 60 days or more apart, or 
when the insured expressly requests, in writing, 
separate contracts, there is a presumption that 
the insurance agent or insurance premium fi- 
nance company did not induce an insured to be- 
come obligated under more than one insurance 
premium finance agreement to earn additional 
fees. 

Statutory Authority G.S. 58-57. 1(a); 58-59(e); 
58-61. 

SECTION .0500 - BAIL BONDSMEN AND 
RUNNERS 

.0501 APPLICATION FOR BAIL BONDSMAN 
OR RUNNER LICENSE 

A form entitled "Bail Bondsman Application" 
shall include general interrogatories relating to 
applicant's qualifications, residence, prospective 
place of business, past business experience, pfe- 
posod method ef operation and all other perti- 
nent information. 

Statutory Authority G.S. 85C-9. 

.0504 BAIL BOND CERTIFICATION SEAL 

(a) The division will mail to each licensee a 
"Bail Bondsman Renewal Application" annu- 
ally. 

(b) The bail bondsman or runner shall com- 
plete the application and return it to the division 
on or before May 34- j_5 of each year. The ap- 
plication shall have attached to it a check made 
payable to the North Carolina Department of 
Insurance for the proper fee specified in General 
Statute 85C-16. 

(c) Renewal applications not received by May 
15 will not be considered for a renewal license; 
the applicant will be required to hie a new appli- 
cation and apply for a new license. 

Statutory Authority G.S. 85C-16; 85C-2(a). 

.0514 COLLATERAL SECLRITY RETURNED 
ON TERMINATION OF LIABILITY 

Any collateral security accepted by a bail 
bondsman from a principal or anyone on his be- 
half shall be returned immediately upon final 
termination of liability on the bond. 

Statutory Authority G.S. 85C-2(a). 

.0517 TERMINATION OF RUNNER BY 
SURETY 

A bail bondsman terminating the appointment 
of a runner shall file, within five days from the 



date of termination, a written notice thereof with 
the commissioner. In addition to the notice re- 
quirements set forth in N.C.G.S. 85C-26, the 
notice shall also include a revocation of the 
power of attorney. 

Statutory Authority G.S. 85C-23; 85C-26. 

TITLE 15 - DEPARTMENT OF NATURAL 

RESOURCES AND COMMUNITY 

DEVELOPMENT 

iV otice is hereby given in accordance with G.S. 
150B-12 that the Wildlife Resources Commission 
intends to amend rule(s) cited as 15 NCAC 10B 
.0115(c). 

1 he proposed effective date of this action is May 
1, 1989. 

1 he public hearing will be conducted at 7:00 
p.m. on February 1, 1989 at Commissioner's 
Room, 6th Floor, Durham County Judicial Build- 
ing, 201 Fast Main Street, Durham, N.C. 



Cc 



omment Procedures: Interested persons may 
present their views either orally or in writing at the 
hearing. In addition, the record of hearing will 
be open for receipt of written comments from 
January 18, 1989, to February 17, 1989. Such 
written comments must be delivered to or mailed 
to the Wildlife Resources Commission, 512 N. 
Salisbury St., Raleigh, N.C. 27611. 

CHAPTER 10 - WILDLIFE RESOURCES AND 
WATER SAFETY 

SUBCHAPTER 10B - HUNTING AND 
TRAPPING 

SECTION .0100 - GENERAL REGULATIONS 

.0115 SHINING LIGHTS IN DEER AREAS 

(b) No person shall, between the hours of 1 1:00 
p.m. and one-half hour before sunrise, inten- 
tionally shine a light upon a deer or intentionally 
sweep a light in search of deer in the indicated 
portions of the following counties: 

(1) Beaufort - entire county; 

(2) Bladen — entire county; 

(3) Brunswick — entire county; 

(4) Camden -- entire county; 

(5) Chowan — entire county; 

(6) Currituck — entire county; 

(7) Duplin — entire county; 

(8) Edgecombe -- entire county; 

(9) Franklin - entire county; 
(10) Gates — entire county; 



NORTH CAROLINA REGISTER 



860 



PROPOSED RULES 



Granville — entire county; 

Greene -- entire county; 

Hertford -- entire county; 

Hoke — entire county; 

Hyde -- entire county, except that part 
of the county described in Paragraph (c) 
of this Rule; 

Jones — entire county; 

I^enoir -- entire county; 

Martin — entire county; 

Montgomery — entire county; 

Nash -- entire county; 

Orange -- entire county; 

Pamlico — entire county; 

Pasquotank — entire county; 

Pender -- entire county; 

Perquimans — entire county; 

Pitt -- entire county; 

Richmond -- entire county; 

Robeson -- entire county; 

Sampson -- entire county; 

Tyrrell -- entire county; 

Vance — entire county; 

Wake -- entire county; 

Warren -- entire county; 

Washington -- entire county; 

Wayne -- entire county. 
No person shall, between the hours of 
one-half hour after sunset and one-half hour be- 
fore sunrise, intentionally shine a light upon a 
deer or intentionally sweep a light in search of 
deer in the indicated portions of the following 
counties: 

(1) Alamance — entire county; 

Alexander -- entire county; 

Alleghany — entire county; 

Anson -- entire county; 

Ashe -- entire county; 

Avery — that portion south and east of 
Highway 221; 

Burke -- entire county; 

Caldwell -- entire county; 

Caswell — entire county; 

Catawba — entire county; 

Chatham — entire county; 

Clay — entire county; 

Cleveland — entire county; 

Cumberland — entire county; 

Davidson — entire county; 

Davie — entire county; 

Durham -- entire countv; 



(11 
(12 
(13 
(14 
(15 



(16 
(17 
(18 
(19 
(20 
(21 
(22 
(23 
(24 
(25 
(26 
(27 
(28 
(29 
(30 
(31 
(32 
(33 
(34 
(35 
(c) 



(2) 
(3) 
(4) 
(5) 
(6) 



(7) 
(X) 

(9) 
(10) 

(ID 
(12) 
(13) 
(14) 
(15) 
(16) 

021 



(44 X 18) Gaston — entire county: 

(4& X 19) Guilford — entire county; 

f4-O- K20) Halifax - entire county; 

(40 X21) Henderson -- entire county; 

(444 (22) Hyde -- that part bounded on the 
north by a line running parallel with and 
1000 yards in a northward direction from 



that part of SR 1304 that leads from 
Hodges' Fork to Rose Bay, on the east 
by the Mattamuskeet National Wildlife 
Refuge boundary, on the southeast by US 
264, and on the west and southwest by a 
line running parallel with and 1000 yards 
in a west or southwest direction from the 
centerline of SR 1304; 

(424 X23) Iredell -- entire county; 

(434 X24) Johnston — entire county; 

(44 X25) Lee — entire county; 

(4» X26) Lincoln — entire county; 

(46 X27) McDowell -- entire county; 

(474 <28) Mecklenburg - entire county; 

(4&X29) Mitchell - entire county; 

(494(30) Northampton — entire county; 

(40 4(31) Person — entire county; 

(444(32) Polk - entire county; 

(42 4(33) Randolph -- entire county; 

f444 (34) Rockingham — entire county; 

(444 X35) Rowan — entire county; 

(44 X36) Rutherford — entire county; 

(464 X37) Scotland — that part lying west of 
US 40 1 north of Laurinburg and north of 
US 74 west of Laurinburg; 

(44 X38) Stanly — entire county; 

(4& X39) Stokes -- entire county; 

(494 (40) Surry -- entire county; 

(44 X41) Transylvania -- entire county; 

(44 4(42) Union -- entire county; 

(44 X43) Watauga — entire county; 

(44 X44) Wilkes - entire county; 

(44 X45) Yadkin - entire county; 

(44 X46) Yancey — entire county. 

Statutory Authority G.S. 113-134; 113-291.1. 
****************** 



lvotice is hereby given in accordance with G.S. 
1 SOB- 12 that the North Carolina Wildlife Re- 
sources Commission intends to amend rule(s) 
cited as 15 NCAC 10C .0407. 

1 he proposed effective date of this action is June 
1, 1989. 

1 he public hearing will be conducted at 10:00 
a.m. on February 1 , 1989 at Room 386, Archdale 
Building. 512 N. Salisbury Street, Raleigh, North 
Carolina. 

O omment Procedures: Interested persons may 
present their views either orally or in writing at the 
hearing. In addition, the record of hearing will 
be open for receipt of written comments from 



S61 



NORTH CAROLINA REGISTER 



PROPOSED RULES 



January 17, 1989, to February 16, 19S9. Such 
written comments must be delivered or mailed to 
the North Carolina Wildlife Resources Commis- 
sion, 512 N. Salisbury St., Raleigh, N.C. 27611. 

SUBCHAPTER IOC - INLAND FISHING 
REGULATIONS 

SECTION .0400 - NONGAME FISH 

.0407 PERMITTED SPECIAL DEVICES 
AND OPEN SEASONS 

Except in designated public mountain trout 
waters, and in impounded waters located on the 
Sandhills Game Land, there is a year-round open 
season for the licensed taking of nongame fishes 
by bow and arrow. Seasons and waters in which 
the use of other special devices is authorized are 
indicated by counties below: 

(71) Person: 

(a) July 1 to August 31 with seines in Hyco 
Creek and Maho Creek, 

(b) July 1 to June 30 with gigs in all public 
waters. 

/ >*»\ Tulir I t s-i liin.i j [\ \ T ri t Vi fr-ini- | r-i I J 1 r^n 

\^7 J^TT T T^T j 131 T^J ^H_T "TTTI vTTT^^^ III TTTTTT 

Piooorvoir; 



Statutory Authority 
113-292. 



G.S. 113-134; 1/3-276; 



****************** 

iV otice is hereby given in accordance with G.S. 
150B-I2 that the Wildlife Resources Commission 
intends to amend rule(s) cited as 15 NCAC 10F 
.0320. 

1 he proposed effective date of this action is May 
1, 1989. 

1 he public hearing will be conducted at 9:00 
a.m. on February 2, 1989 at Room 386, Archdale 
Building, 512 N. Salisbury Street, Raleigh, North 
Carolina. 



Cc 



■ omment Procedures: Interested persons may 
present their views either orally or in writing at the 
hearing. In addition, the record of hearing will 
be open for receipt of written comments from 
January 18, 1989, to February 17, 1989. Such 
written comments must be delivered or mailed to 
the Wildlife Commission, 512 N. Salisbury St., 
Raleigh, N.C. 27611. 

SUBCHAPTER 10F - MOTORBOATS AND 
WATER SAFETY 



SECTION .0300 - LOCAL WATER SAFETY 
REGULATIONS 

.0320 ONSLOW COUNTY 

(a) Regulated Areas. This Rule applies to the 
following waters and portions of waters: 

(2) New River: those waters of New River, 
near Jacksonville, between a point 100 
yards upstream, and 300 yards down- 
stream, of the Seaboard Coast Line Rail- 
road trestle; and those waters of the New 
River between the Old Bridge Street and 
US L7 ( Riverview Street) bridges and up- 
stream from the US 17 bridge along the 
south shore to a point 50 yards beyond 
the Jacksonville Marina; 

Statutory Authority G.S. 75A-3; 75 A- 15. 

TITLE 16 - DEPARTMENT OF 
EDUCATION 

iS otice is hereby given in accordance with G.S. 
150B-12 that the State Board of Education in- 
tends to amend rule(s) cited as 16 NCAC 6C 
.0101 and .0401. 

1 he proposed effective date of this action is May 
1, 1989. 

1 he public hearing will be conducted at 2:00 
p.m. on February 7, 1989 at Third Floor Confer- 
ence Room, Education Bui/ding, 116 West 
Edenton Street, Raleigh, N. C. 



Cc 



omment Procedures: Any interested person 
may present views and comments either in writing 
prior to or at the hearing or orally at the hearing. 

CHAPTER 6 - ELEMENTARY AND 
SECONDARY EDUCATION 

SUBCHAPTER 6C - PERSONNEL 

SECTION .0100 - GENERAL PROVISIONS 

.0101 - DEFINITIONS 

As used in this Subchapter: 

(5) "Part-time employee" means a person em- 
ployed for batf time &f moro at least 20 
hours per week. 

Authority N.C. Constitution, Article IX, Sec. 5. 

SECTION .0400 - LEAVE 

.0401 VACATION LEAVE 



NORTH CAROLINA REGISTER 



862 



PROPOSED RULES 



(j) Instructional personnel and school bus Employees may charge leave taken only to 
drivers may not take vacation leave on days when scheduled teacher workdays and the 10 vacation 
students are scheduled to be in attendance. leave days scheduled in the school calendar. 
These persons may take vacation leave instead (!) 8«s driv e ro a*© Bet- oligiblo fof vacation 
of sick leave on days when students are not loavo. 
scheduled to attend. LEAs may designate spe- 
cific scheduled workdays for required attendance Statutory Authority G.S. 1 15C-272; 1 15C-285; 
as long as employees have an opportunity to take 1 I5C-302; 1 15C-316. 
annual leave earned during the school year. 



S63 NOR TH CA R OLINA R EG IS TER 



FINAL RULES 



LJ pon request from the adopting agency, the 
text of rules will be published in this section. 

W hen the text of any adopted rule is iden- 
tical to the text of that as proposed, adoption 
of the rule will be noted in the "List of Rules 
Affected" and the text of the adopted rule 
will not be republished. 

A dopted rules filed by the Departments of 
Correction, Revenue and Transportation are 
published in this section. These departments 
are not subject to the provisions of G.S. I50B, 
Article 2 requiring publication of proposed 
rules. 



TITLE 17 DEPARTMENT OF REVENUE 
CHAPTER 1 - DEPARTMENTAL RULES 

SUBCHAPTER IC - GENERAL 
ADMINISTRATION 

SECTION .0400 - INTEREST REQUIREMENTS 

.0402 ESTABLISHED INTEREST RATES 

(a) For the calendar years 1978 and 1979, the 
Secretary of Revenue under authority of Sub- 
section (i) of G.S. 105-241.1 has established an 
interest rate of six percent per annum in con- 
formance with the adjusted rate established under 
Section 6621 of the United States Internal Re- 
venue Code. The computation shall be at the 
rate of one-half percent per month or fraction 
thereof. 

(b) For the calendar years 1980 and 1981, the 
Secretary of Revenue under authority of Sub- 
section (i) of G.S. 105-241.1 has established an 
interest rate of twelve percent per annum in 
conformance with the adjusted rate established 
under Section 662 1 of the United States Internal 
Revenue Code. The computation shall be at the 
rate of one percent per month or fraction thereof. 

(c) For the calendar year 1983, the Secretary 
of Revenue under the authority of Subsection (i) 
of G.S. 105-241.1 has established on November 
29, 1982 an interest rate of nine percent per an- 
num. The computation shall be at the rate of 
three-fourths percent per month or fraction 
thereof. 

(d) For the calendar year 1984, the Secretary 
of Revenue under the authority of Subsection (i) 
of G.S. 105-241.1 has established on November 
29, 1983 and interest rate of nine percent per an- 
num. The computation shall be at the rate of 



three-fourths percent per month or fraction 
thereof. 

(e) For the calendar year 1985, the Secretary 
of Revenue under the authority of Subsection (i) 
of G.S. 105-241.1 has established on November 
19, 1984 an interest rate of 9 percent per annum. 
The computation shall be at the rate of three- 
fourths percent per month or fraction thereof. 

(f) For the calendar year 1986, the Secretary 
of Revenue under the authority of Subsection (i) 
of G.S. 105-241.1 has established on October 25, 
1985 an interest rate of nine percent per annum. 
The computation shall be at the rate of three- 
fourths percent per month or fraction thereof. 

(g) For the calendar year 1987, the Secretary 
of Revenue under the authority of Subsection (i) 
of G.S. 105-241.1 has established on November 
18, 1986 an interest rate of nine percent per an- 
num. The computation shall be at the rate of 
three-fourths percent per month or fraction 
thereof. 

(h) For the calendar year 1988, the Secretary 
of Revenue under the authority of subsection (i) 
of G.S. 105-241.1 has established on November 
30, 1987 an interest rate of nine percent per an- 
num. The computation shall be at the rate of 
three-fourths percent per month or fraction 
thereof. 

(i) For the calendar year 1989, the Secretary of 
Revenue under the authority of subsection (i) of 
G.S. 105-241.1 has established on November 18, 
1988, an interest rate of nine percent per annum. 
The computation shall be at the rate of three- 
fourths percent per month or fraction thereof. 

History Note: Statutory Authority G.S. 
105-241.1; 105-262; 
Eff November 9, 1977; 
Amended Eff. January 1 , 1989; 
February 1, 1988; January 1, 1987; 
January 1, 1986. 

CHAPTER 6 - INDIVIDUAL INCOME TAX 
DIVISION 

SUBCHAPTER 6C - WITHHOLDING 

SEC HON .0100 - WITHHOLDING INCOME 
TAXES 

.0104 EXEMPTION CERTIFICATES 

(a) Each new employee, before beginning em- 
ployment, must furnish his employer with a 
signed North Carolina Employee's Withholding 
Exemption Certificate, Form NC-4, showing the 
amount of North Carolina personal exemption 
which he claims. A certificate filed by a new 
employee is effective upon the first payment of 
wages thereafter and remains in effect until a new 
one is furnished. North Carolina and federal 



NORTH CAROLINA REGISTER 



864 



FINAL RULES 



laws concerning exemptions differ, and federal 
exemption certificates are not acceptable. If an 
employee fails to furnish an exemption certif- 
icate, Form NC-4, the employer must withhold 
tax on the basis of the personal exemption al- 
lowable for a single individual. 

(b) If an employee's exemption should de- 
crease, requiring more tax to be withheld, the 
employee is required to furnish his employer with 
an amended exemption certificate within 10 days 
after the change. Should the exemption increase, 
requiring less tax to be withheld, the employee 
may furnish his employer with an amended ex- 
emption certificate at any time after the change 
occurs. 

(c) If a resident expects to have considerably 
more itemized deductions than the standard de- 
duction or tax credits such as energy expenditures 
or child and dependent care expenses which are 
allowable on his income tax return, he may re- 
duce the amount withheld by claiming additional 
allowances as provided on the withholding ex- 
emption certificate. An additional allowance 
may be claimed for each eight hundred dollars 
($800.00) that itemized deductions are expected 
to exceed the standard deduction. An additional 
eight hundred dollars ($800.00) exemption al- 
lowance may be claimed for each fifty dollars 
($50.00) that estimated tax credits are expected 
to reduce the tax due. Each additional allowance 
has the same effect as another dependent. Re- 
cords must be maintained by the employee to 
support the additional allowances claimed. 

(d) To increase withholding an employee may 
claim less than his allowable exemption or may 
enter into an agreement with his employer and 
request that an additional amount be withheld 
by entering the desired amount on the Form 
NC-4. 

An employee working for two or more em- 
ployers should claim his allowable exemption 
with only one employer and claim zero ex- 
emption with the other employers. 

If an employee furnishes his employer with a 
completed Employee's Statement of No Income 
Tax Liability, Form NC-4A, his wages will be 
exempt from withholding of North Carolina in- 
come tax for the remainder of the calendar year 
or until the employee withdraws the statement. 

If the employer has reason to believe that the 
employee will have income greater than his an- 
nual personal exemption, the employer should 
refer to Paragraph (f) of this Rule for in- 
structions. 

Form NC-4A is effective for one calendar year 
only. The employee must complete another 
Form NC-4A if he qualifies for a later year. 
Withhold on the basis of the personal exemption 
allowable for a single individual if the employee 



does not furnish another exemption certificate 
after expiration of Form NC-4A. 

(e) You are not required to ascertain whether 
or not the total amount of exemptions claimed 
is greater than the total amount to which the 
employee is entitled. If, however, you have rea- 
son to believe that the amount of exemptions 
claimed by an employee is greater than the 
amount to which such employee is entitled, you 
are required to notify the Department of Re- 
venue immediately. 

(f) An employer shall submit, in accordance 
with the paragraphs below, a copy of any with- 
holding exemption certificate, together with a 
copy of any written statement received from the 
employee in support of the claims made on the 
certificate, which is received from the employee 
during the reporting period (without regard to the 
date it is effective) if the employee is employed 
by that employer on the last day of the reporting 
period, and if the total number of dependents 
within the meaning of G.S. 105-149(5) and al- 
lowances for itemized deductions and tax credits 
exceeds 14. The employer shall also submit a 
copy of any certificate on which an employee 
claims a status exempting the employee from 
withholding and the employer reasonably ex- 
pects, at the time the certificate is received, that 
the employee's wages as defined under G.S. 
105-163.1(6) will exceed his basic personal ex- 
emption not including exemptions for depen- 
dents. 

Copies required to be furnished shall be sub- 
mitted at the time of filing Form NC-5 for the 
reporting period, the calendar quarter, or Form 
NC-5M for the last month of the calendar quar- 
ter. At the choice of the employer, copies may 
be submitted earlier and for shorter reporting 
periods. 

The employer shall submit the copies to the 
Department of Revenue along with a statement 
showing the employer's name, address, with- 
holding identification number, and the number 
of copies of withholding exemption certificates 
submitted. 

Upon request of the Department of Revenue, 
an employer shall also submit a copy of any 
currently effective withholding exemption certif- 
icate (or make the original certificate available for 
inspection), together with a copy of any written 
statement received from the employee in support 
of the claims made on the certificate. This re- 
quest of the Department may relate either to one 
or more named employees or to one or more 
named groups of employees. In this regard.the 
Department may, by written notice, advise the 
employer that a copy of each new withholding 
exemption certificate received from one or more 
named employees, or from one or more named 



865 



NORTH CAROLINA REGISTER 



FINAL RULES 



groups of employees, is to be submitted to the 
Department. The employer shall then submit to 
the Department a copy of each such new certif- 
icate of each such employee immediately after the 
employer receives the new certificate from the 
named employee. 

The amount of income tax to be withheld shall 
be determined as follows: 

(1) Until receipt of written notice from the 
Department of Revenue that a certificate, 
a copy of which was submitted under this 
Rule, is defective, that certificate is effec- 
tive and the employer shall withhold on 
the basis of the statements made in that 
certificate, unless that certificate must be 
disregarded under the provisions of Sub- 
paragraph (f)(4) of this Rule. If the De- 
partment of Revenue fmds that a copy of 
a withholding exemption certificate sub- 
mitted contains any materially incorrect 
statements or if, after written request to 
the employee for verification of the state- 
ments on the certificate, the Department 
of Revenue determines that it lacks suffi- 
cient information to determine if the cer- 
tificate is correct, and in either event so 
notifies the employer in writing, the em- 
ployer shall then consider the certificate 
to be defective for purposes of computing 
amounts of withholding. 

(2) The Department of Revenue may, as a 
part of the written notice to the employer, 
advise the employer of the reasons why it 
has determined that a certificate is defec- 
tive. In this regard, the Department may, 
based upon its findings, advise the em- 
ployer that the employee is not entitled to 
claim a status exempting the employee 
from withholding and is not entitled to 
claim an amount of withholding ex- 
emptions in excess of the amount speci- 
fied by the Department in the notice. 

(3) The employer shall promptly furnish the 
employee who filed the defective certif- 
icate, if still in his employ, with a copy of 
the written notice of the Department of 
Revenue with respect to the certificate and 
may request another withholding ex- 
emption certificate from the employee. 
The employer shall withhold amounts 
from the employee on the basis of the 
maximum amount specified in the written 
notice received from the Department. 



(4) If and when the employee does file any new 
certificate (after an earlier certificate was consid- 
ered to be defective), the employer shall withhold 
on the basis of that new certificate (whenever 
filed) as currently effective only if the new certif- 
icate does not make a claim of exempt status or 
of an amount of withholding exemptions which 
claim is inconsistent with the advice earlier fur- 
nished by the Department of Revenue in its 
written notice to the employer, then the em- 
ployer shall disregard the new certificate, shall 
not submit that new certificate to the Depart- 
ment, and shall continue to withhold amounts 
from the employee on the basis of the maximum 
amount specified in the written notice received 
from the Department. If, however, the employee 
specifies on such new certificate, or by a written 
statement attached to that certificate, any cir- 
cumstances of the employee which have changed 
since the date of the Department's earlier written 
notice, or any other circumstances or reasons, as 
justification or support for the claims made by 
the employee on the new certificate, the em- 
ployer must submit a copy of that new certificate 
and the employee's written statement (if any) to 
the Department. The employer shall continue 
to disregard that new certificate and shall con- 
tinue to withhold amounts from the employee 
on the basis of the maximum amount specified 
in the written notice, received from the Depart- 
ment unless and until the Department of Re- 
venue by written notice (under Subparagraph 
(f)(2) of this Rule) advises the employer to with- 
hold on the basis of that new certificate and re- 
vokes its earlier written notice. 

For purposes of Paragraph (f) of this Rule, the 
term "employer" shall be the same as defined in 
G.S. 105-163.1(5) and shall include any individ- 
ual authorized by the employer to receive with- 
holding exemption certificates, to make 
withholding computations, or to make payroll 
distributions. 

History Note: Filed as a Temporary 
Amendment (d) and (f) Eff. 
November 16, 1981, for a Period of 
46 Days to Expire on January 1 , 1982; 
Statutory Authority G.S. 1 05- 163.3; 
105-163.5; 105-163.18; 105-262; 
Eff. February 1, 1976; 

Amended Eff January 1, 1989; June 1, 1982; 
January 1, 1982; April 12, 1981. 



NORTH CAROLINA REGISTER 



866 



NCAC INDEX 



TITLE/MAJOR DIVISIONS OF THE NORTH CAROLINA ADMINISTRATIVE CODE 
TITLE DEPARTMENT 



2 
3 

4 
5 
6 

7 
8 
9 

10 
11 
12 
13 
14A 
15 
16 
17 
IS 

19A 
20 
♦21 
22 
23 
24 
25 
26 



Administration, Department of 

Agriculture, Department of 

Auditor, Department of State 

Commerce, Department of 

Corrections, Department of 

Council of State 

Cultural Resources, Department of 

Elections, State Board of 

Governor, Office of the 

Human Resources, Department of 

Insurance, Department of 

Justice, Department of 

I^abor, Department of 

Crime Control and Public Safety, Department of 

Natural Resources and Community Development, Department of 

Education, Department of 

Revenue, Department of 

Secretary of State, Department of 

Transportation, Department of 

Treasurer, Department of State 

Occupational Licensing Boards 

Administrative Procedures 

Community Colleges, Department of 

Independent Agencies 

State Personnel, Office of 

Administrative Hearings, Office of 



NOTE: Title 21 contains the chapters of the various occupational licensing boards. 
CHAPTER LICENSPsG BOARDS 



2 
4 
6 
8 
10 
12 
14 
16 
IS 
20 
21 
22 
26 
2S 
31 
32 
33 
34 
36 
37 
38 
40 
42 



Architecture, Board of 

Auctioneers, Commission for 

Barber Examiners, Board of 

Certified Public Accountant Examiners, Board of 

Chiropractic Examiners, Board of 

Contractors, Licensing Board for 

Cosmetic Art Examiners, Board of 

Dental Examiners, Board of 

Electrical Contractors, Board of Examiners of 

Foresters, Board of Registration for 

Geologists, Board of 

Hearing Aid Dealers and Fitters Board 

Landscape Architects, Licensing Board of 

Landscape Contractors, Registration Board of 

Martial & Family Therapy Certification Board 

Medical Examiners, Board of 

Midwifer>' Joint Committee 

Mortuary Science, Board of 

Nursing, Board of 

Nursing Home Administrators, Board of 

Occupational Therapists, Board of 

Opticians, Board of 

Optometry-, Board of Examiners in 



S67 



NORTH CAROLINA REGISTER 



NC AC INDEX 



44 Osteopathic Examination and Registration, Board of 

46 Pharmacy, Board of 

48 Physical Therapy, Examining Committee of 

50 Plumbing and Heating Contractors, Board of 

52 Podiatry Examiners, Board of 

53 Practicing Counselors, Board of 

54 Practicing Psychologists, Board of 

56 Professional Engineers and Land Surveyors, Board of 

58 Real Estate Commission 

60 Refrigeration Examiners, Board of 

62 Sanitarian Examiners, Board of 

63 Social Work, Certification Board for 

64 Speech and Language Pathologists and 

Audiologists, Board of Examiners of 

66 Veterinary Medical Board 



NOR TH CAROLINA REGIS TER 868 



CUMULA TIVE INDEX 



CUMULA TIVE INDEX 

(April 1988 - March 1989) 



1988 - 1989 

Pages Issue 

1 - 25 1 - April 

26 - 108 2 - April 

109 - 118 3 - May 

119 - 145 4 - May 

146 - 184 5 - June 

185 - 266 6 - June 

267 - 294 7 - July 

295 - 347 8 - July 

348 - 400 9 - August 

401 - 507 10 - August 

508 - 523 11 - September 

524 - 593 12 - September 

594 - 606 13 - October 

607 - 686 14 - October 

687 - 728 15 - November 

729 - 799 16 - November 

800 - 833 17 - December 

834 - 853 18 - December 

854 - 872 19 - January 



AO - Administrative Order 

AG - Attorney General's Opinions 

C - Correction 

E - Errata 

EO - Executive Order 

FDL - Final Decision Letters 

FR - Final Rule 

GS - General Statute 

JO - Judicial Orders or Decision 

LRA - List of Rules Affected 

M - Miscellaneous 

NP - Notice of Petitions 

PR - Proposed Rule 

SO - Statements of Organization 

TR - Temporary Rule 



ADMINISTRATION 

Administrative Analysis Division, 447 PR 

Auxiliary' Services, 270 PR 

Departmental Rules, 270 PR 

Human Relations Council, 609 PR 

State Construction, 187 PR, 834 PR 

Youth Advocacy and Involvement Office, 14S PR 



869 



NORTH CAROLINA REGISTER 



CUMULA TIVE INDEX 



ADMINISTRATIVE HEARINGS 

General, 579 PR 

Hearings Division, 76 PR, 581 PR 

Rules Division, 580 PR 

706 Deferral, 843 PR 

ADMINISTRATIVE ORDER 

Administrative Order, 369 AO 

AGRICULTURE 

Food and Drug Protection Division, 271 PR 

N.C. Gasoline and Oil Inspection Board, 689 PR 

N.C. Pesticide Board, 524 PR 

N.C. State Fair, 451 PR 

Plant Industry, 453 PR 

Standards Division, 452 PR 

Structural Pest Control Committee, 296 PR 

COMMERCE 

Alcoholic Beverage Control Commission, 276 PR 

Departmental Rules, 612 PR 

Milk Commission, 120 PR, 190 PR 

N.C. State Ports Authority, 731 PR 

Seafood Industrial Park Authority, 613 PR 

COMMUNITY COLLEGES 

Community Colleges, 287 PR, 557 PR 

CORRECTION 

Division of Prisons, 490 FR 

CRIME CONTROL AND PUBLIC SAFETY 

Alcohol Law Enforcement, 47 PR 

CULTURAL RESOURCES 

Division of Archives and History, 691 PR 

EDUCATION 

Elementary and Secondary Education, 862 PR 



ELECTIONS 






State Board of Elections, 


120 PR 




EXECUTIVE ORDERS 






Executive Orders 68 ■ 


71, 1 


EO 




72, 119 


EO 




73, 146 


EO 


74 - 


■ 75,508 


EO 


76 ■ 


77, 594 


EO 




78, 800 


EO 



FINAL DECISION LETTERS 

Voting Rights Act, 5 FDL, 26 FDL, 185 FDL, 267 FDL, 295 FDL, 370 FDL, 
401 FDL, 511 FDL, 597 FDL, 608 FDL, 688 FDL, 729 FDL, 801 FDL, 854 FDL 

GENERAL STATUTES 

Chapter 7A, 348 GS 
Chapter 143B, 350 GS 
Chapter 150B, 352 GS 



NOR TH CA R OLINA REGIS TER 8 70 



CUMULA TIVE INDEX 



HUMAN RESOURCES 

Division of Aging, 229 PR 

Drug Commission, 1 13 FR 

Facility Services, 455 PR, 524 PR, 614 PR, 739 PR 

Health Services, 7 PR, 220 PR, 296 PR, 616 PR 

Medical Assistance, 7 PR, 30 PR, 109 PR, 121 PR, 237 PR, 303 PR, 461 PR 

Mental Health: General, 457 PR, 530 PR, 770 PR 

Mental Health: Hospitals, 459 PR 

Mental Health: Mental Retardation and Substance Abuse Services, 629 PR 

Mental Health: Other Programs, 530 PR, 

Office of the Secretary, 31 PR 

Social Services Commission, 27 PR, 531 PR 

Vocational Rehabilitation Services, 371 PR 

^DEPENDENT AGENCIES 

Agricultural Finance Authority, 841 PR 

Housing Finance, 21 PR, 134 PR, 255 PR, 518 PR, 839 PR 

INSURANCE 

Agent Services Division, 238 PR, 636 PR 
Company Operations Division, 470 PR 
Consumer Services, 691 PR 
Engineering and Building Codes, 772 PR 
Fire and Casualty Division, 32 PR, 461 PR, 773 PR 
Fire and Rescue Services Division, 122 PR, 149 PR 
Life: Accident and Health Division, 534 PR 
Special Services Division, 856 PR 
Support Services Division, 856 PR 

JUSTICE 

Criminal Justice Education and Training Standards, 304 PR 
Private Protective Services, 303 PR, 834 PR 

LABOR 

Boiler and Pressure Vessel, 598 PR 

Elevator and Amusement Device Division, 599 PR 

Notice, 607 C 

Office of Occupational Safety and Health, 598 PR 

LICENSING BOARDS 

Cosmetic Art Examiners, 283 PR, 473 PR 
CPA Examiners, 73 PR, 472 PR, 837 PR 
Dental Examiners, 704 PR, 820 PR 
Examiners of Electrical Contractors, 151 PR 
Hearing Aid Dealers, 77 FR 
Medical Examiners, 838 PR 
Nursing, 376 PR, 477 PR, 704 PR 
Podiatry Examiners, 377 PR 

LIST OF RULES AFFECTED 

April 1, 1988, 102 LRA 
May 1, 1988, 137 LRA 
June 1, 1988, 260 LRA 
July 1, 1988, 335 LRA 
August 1, 1988,496 LRA 
September 1, 1988, 585 LRA 
October 1, 1988, 675 LRA 
November 1, 1988, 790 FRA 



871 NORTH CAROLINA REGISTER 



CUMULA TIVE INDEX 



December 1, 1988, 845 LRA 

NATURAL RESOURCES AND COMMUNITY DEVELOPMENT 

Coastal Management, 11 PR, 67 PR, 254 PR, 281 PR, 703 PR 
Community Assistance, 69 PR, 555 PR. 836 PR 
Division of Economic Opportunity, 556 PR, 778 PR 

Environmental Management, 241 PR, 278 PR, 599 PR, 656 PR, 698 PR, 777 PR 
Forest Resources, 68 PR 
Marine Fisheries, 62 PR 
Soil and Water Conservation, 1 1 1 PR 

Wildlife Resources and Water Safety, 111 PR, 282 PR, 470 PR, 513 PR, 555 PR, 
599 PR, 656 PR, 777 PR, 805 PR, 835 PR, 860 PR 

NOTICE OF PETITION 

Municipal Incorporation, 804 NP 

REVENUE 

Departmental Rules, 864 FR 

Individual Income Tax, 710 FR, 825 FR, 864 FR 

License and Excise Tax, 113 FR 

Motor Fuels Tax, 258 FR 

Sales and Use Taxes, 386 FR, 584 FR, 826 FR 

SECRETARY OF STATE 

Securities Division, 125 PR, 656 PR 

STATE PERSONNEL 

State Personnel Commission, 135 PR, 333 PR, 559 PR, 781 PR 

STATE TREASURER 

Escheats and Abandoned Property, 328 PR 
Local Government Commission, 18 PR 
Retirement Systems, 513 PR 

STATEMENTS OF ORGANIZATION 

Statements of Organization, 403 SO 

TRANSPORTATION 

Division of Highways, 719 FR 

Division of Motor Vehicles, 172 FR, 258 FR, 720 FR 



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